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Nidec Quality Control Scandals: Impact on Corporate Reputation

Source:Industrial Automation / Time:2026-08-12

Nidec disclosed that changes were made to product materials, processes, and designs without customer approval, many involving parts used in household appliances .

Company Response:

  • No quality issues that immediately affect product functionality or safety have been identified

  • Regaining trust is the company's top priority

  • Investigation into accounting issues is proceeding as expected

Market Impact:

  • Nidec shares were battered but have since regained much of their decline

  • Stock removed from Nikkei 225 and Topix indexes

  • TSE may delist the company if internal management does not improve

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